Women & Men in Management Chapter 9 – Promoting Nondiscrimination, Diversity, and Inclusion

Corporate Action Promoting nondiscrimination Promoting diversity Legality: complying with federal, state, and local EEO laws Refraining from discrimination on job-irrelevant qualities (ex. Sexual orientation) Promoting diversity Legality: Affirmative action programs Increase diversity for business reasons Promoting inclusion No laws, but may provide advantages

Legal Requirements Refraining from discrimination Title VII, Civil Rights (1964) Prohibits discrimination on the basis of sex, race, color, religion, national origin, and more recently pregnancy and childbirth in any employment condition Bans sexual harassment Two types of discrimination: Disparate treatment Disparate impact

Legal Requirements Refraining from discrimination Title VII, Civil Rights (1964) Exceptions to Title VII Exception to ban on sex discrimination: discrimination based on seniority system When sex represents a bona fide occupational qualification

Legal Requirements Refraining from discrimination Equal Pay Act (1963) It is illegal to pay members of one sex a lower rate than the other if they hold jobs that require equal skill, effort, and responsibility under similar working conditions in the same firm Exceptions to Equal Pay Act Pay differences are permitted for: Seniority systems Merit systems Systems measuring earnings by quality or quantity of production, or difference in experience

Legal Requirements Refraining from discrimination Quotas Are not required, but may be allowed to remedy a previous imbalance caused by discrimination How are wages set? Job evaluation, key jobs, and job clusters Skill Effort Responsibility Working Conditions

The Cost of Discrimination Direct costs Fines Punitive damages Legal fees Indirect costs Damage to company image Reputation Lack of employee regard for the firm

Taking Affirmative Action Purpose: overcome the past effects of discrimination Who must follow affirmative action? U.S. organizations with 50 or more employees and federal contracts exceeding $50,000 per year Who administers affirmative action? The Office of Federal Contract Compliance Programs (OFCCP)

Business Imperatives: Why Promote Diversity? Trends towards increasing diversity: More diverse labor force in U.S. in multiple dimensions Educational attainment of females has risen, relative to males Worldwide shift from manufacturing-based economies to service delivery economies Increasing globalization of business, multinational business operations, and worldwide marketing

The Business Side of Diversity Firms with about 50% female workforce performed better than those with lower or higher percentages of women. Profitable firms are successful because they make smarter decisions than competitors: Embracing diversity may just be one of those smarter decisions that help lead to performance

Business Imperatives: Why Promote Inclusion? Inclusion prevents employees from feeling alienated from those who are different from themselves Three types of diversity cultures: Monolithic organizations Plural organizations Multicultural organizations

Monolithic Organizations Characteristics A large majority of employees from one group, especially in managerial ranks Differences between minority and majority are solved by assimilation The expectation of minority groups to adopt the norms and values of the majority in order to survive Low levels of intergroup conflict Message: “We do not welcome diversity”

Plural Organizations Characteristics Take steps to promote diversity, such as in hiring and promotion and managerial training Focus on numbers of majority vs. minority instead of the quality of work relationships Resolve differences through assimilation Intergroup conflict is high if the majority group disagrees with organizational changes to promote diversity Message: “We promote diversity, but we expect employees to fit in with the majority group”

Multicultural Organizations Characteristics Promote diversity and a culture of inclusion Respond to differences by encouraging members to respect the norms and values of other groups Increased use of diverse work teams Intergroup conflict is low Message: “We welcome members of all groups as full participants in our culture, and we strive to take full advantage of what they have to offer”

The Benefits of Inclusion Inclusive cultures Are more attractive to prospective employees Are likely to contribute to full utilization and retention of valued employees Can enhance the organization’s bottom line Create a competitive advantage against firms who are weaker in promotion of inclusion

Organizational Action for Diversity Recommended Actions for Organizations and Their Employees 1. Set and communicate the organizational goals of promoting nondiscrimination, diversity, and inclusion 2. Comply with all EEO laws 3. Encourage employees to be champions of diversity, to take strong stands on diversity issues in the workplace and behave as role models for others 4. Assign responsibility for achieving organizational goals to a highly placed executive 5. Make sure that employees understand how affirmative action works in the organization

Organizational Action for Diversity Recommended Actions for Organizations and Their Employees (cont’d) 6. Work with employee network groups formed out of employees’ common interests in planning and implementing cultural change 7. Provide diversity training that educates employees about organizational goals and gives them the knowledge and skills needed to work toward these goals 8. Analyze the organization’s composition and culture to determine what specific improvements are needed, and then set objectives for attaining them 9. Ensure that the achievement of organizational goals and objectives is rewarded by the management system and supported by the organizational culture 10. Continually monitor the organization’s progress relative to its goals and take appropriate actions to ensure that improvements are permanent

Educational Initiatives for Employees Education and training programs should meet a range of objectives and increase participants’: Knowledge about diversity issues Familiarity with organizational policies regarding inappropriate workplace behavior Awareness of their own stereotypes and prejudices Skills in moving beyond these stereotypes and prejudices Fluency of other languages and knowledge of national cultures (in multinational organizations) Managerial skills in making bias-free decisions and dealing with diversity-related incidents Efforts to change the organization’s diversity culture

Book Wrap Up How does it all relate? Recommended actions Goal Overall directed towards organizations, but individual decisions and changes are what change the organization itself Goal To create a nondiscriminatory, diverse, and inclusive workplace, in which individuals are valued for what they bring to the workplace rather than for their demographic qualities

Chapter 9 Terms Promoting nondiscrimination Job evaluation Affirmative action Promoting diversity Monolithic organizations Promoting inclusion Title VII of the Civil Rights Act Plural organizations Multicultural organizations Disparate treatment discrimination Champions of diversity Disparate impact discrimination Cultural audit Bona fide occupational qualification Equal Pay Act